Editor's note: This story has been updated to better reflect Voyager's proposed plan of reorganization, which requires court approval.
Voyager Digital CEO Stephen Ehrlich said Wednesday that customers with U.S. dollar deposits on its brokerage platform will receive access to funds after the completion of a fraud prevention process.
What Happened: Earlier today, Benzinga reported that Voyager Digital Ltd. VYGVF filed for Chapter 11 bankruptcy.
Voyager has approximately $1.3 billion of cryptocurrency assets on its platform, besides claims against Three Arrows Capital (3AC) of more than $650 million.
Voyager CEO Stephen Ehrlich addressed the situation on Twitter Inc TWTR, sharing details of a plan of reorganization that he said would return account access to customers.
Customers with crypto in their account(s) will receive in exchange a combination of the crypto in their account(s), proceeds from the 3AC recovery, common shares in the newly reorganized Company, and Voyager tokens.— Stephen Ehrlich (@Ehrls15) July 6, 2022
Under the proposed plan, customers would receive a combination of crypto, proceeds from the 3AC recovery process, equity shares in the newly organized company and the platform’s native Ethereum ETH/USD-based crypto token Voyager Token VGX/USD.
At press time, VGX was trading at $0.214, recording a 13% decline over 24 hours.
“It’s important to note that as part of this announcement we are confirming that customers with USD deposits in their account(s) will receive access to those funds after a reconciliation and fraud prevention process is completed with Metropolitan Commercial Bank,” stated Ehrlich in his Twitter update.
For additional questions about the Chapter 11 process, you can call 1 (855) 473-8665 (toll-free in the U.S.) or +1 (949) 271-6507 (for parties outside the U.S.), or visit https://t.co/pJwk9cP8By. As always, thank you for your continued support.— Stephen Ehrlich (@Ehrls15) July 6, 2022
I want my crypto and my USDC! You screwed us over.— Rebekah Brown (@busymomofsoccer) July 6, 2022
A majority of customers took to Twitter to share their displeasure at Voyager’s proposed means for reimbursing their accounts.
Sounds to me like we will only get money back if we had USD. The rest of our crypto will be used to get them out of debt and they will pay us back by giving us shares in their reorganized company.— NaSCΞNT (@CryptoCitizen88) July 6, 2022
I could be wrong though.
I'm sorry about what happened to you but please open your eyes. You've been fleeced.— Mike Alfred (@mikealfred) July 6, 2022
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